8-K
Equity Bancshares Inc (EQBK)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 22, 2025
EQUITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Kansas | 001-37624 | 72-1532188 |
|---|---|---|
| (State or other jurisdiction of<br><br>incorporation or organization) | (Commission<br><br>File Number) | (I.R.S. Employer<br><br>Identification No.) |
| 7701 East Kellogg Drive, Suite 300<br><br>Wichita, KS | 67207 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: 316.612.6000
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class<br><br>Class A, Common Stock, par value $0.01 per share | Trading Symbol<br><br>EQBK | Name of each exchange on which registered<br><br>New York Stock Exchange |
|---|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On January 22, 2025, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the fourth quarter ended December 31, 2024, on Thursday, January 23, 2025, at 9:00 a.m. Central Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the fourth quarter ended December 31, 2024, and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Earnings Press Release, Dated January 22, 2025 |
| 99.2 | Investor Presentation |
| 104 | Cover Page Interactive Data File |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Equity Bancshares, Inc. | |
|---|---|
| Date: January 22, 2025 | By: /s/ Chris M. Navratil |
| Chris M. Navratil | |
| Executive Vice President and Chief Financial Officer |
EX-99.1
Equity Bancshares, Inc. Exhibit 99.1
PRESS RELEASE
Equity Bancshares, Inc. Fourth Quarter Results Include Net Interest Margin Expansion and Close of Common Equity Capital Raise
Reports Net Interest Margin of 4.17%, Closes the Quarter with a Tangible Common Equity Ratio of 9.95%
WICHITA, Kansas, January 22, 2025 (BUSINESSWIRE) – Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company,” “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $17.0 million or $1.04 earnings per diluted share for the quarter ended December 31, 2024.
“Our Company had an excellent year as we realized expansion of our footprint, our balance sheet and our ownership group," said Brad S. Elliott, Chairman and CEO of Equity. “Our team remains committed to generating value for our customers, our employees and our shareholders and enters 2025 positioned to execute."
"During the quarter, we were able to successfully bolster our capital through a common stock raise," Mr. Elliott continued. "The additive equity positions our Company to be opportunistic in delivering on our two-prong growth strategy of organic production and strategic acquisition. We continue to be optimistic about opportunities to deploy these in the markets in which we operate."
Notable Items:
- The Company realized earnings per diluted share of $1.04. Margin for the quarter was 4.17% positively impacted by non-recurring nonaccrual reversals and prepayment fees of approximately $1.5 million. Excluding these non-recurring items, margin for the quarter was 4.04% an increase of 17 basis points as compared to the previous quarter.
- The Company realized book value per share expansion of $1.07 per share, or 3.2%. Tangible book value per share improved $1.69 per share, or 6.0%. Book value per share excluding AOCI increased $1.61, or 4.5%. Tangible common equity to tangible assets closed the period at 9.95%.
- The Company completed a common stock capital raise, issuing 2,067,240 shares at a price of $44.50 per share. After expense capital impact totaled $87.0 million.
- Deposit balances, excluding brokered, increased $211.2 million driven by seasonal inflows on municipality relationships. Full year growth in deposits, excluding brokered, was $304.2 million, or 7.3%.
- Loan balances closed the period at $3.5 billion, reflecting full year growth of $167.9 million, or 5.0%. The loan-to-deposit ratio closed the period at 80.0%.
- Realized opposing asset quality trends as nonaccrual loans declined from $31.3 million to $27.1, or 0.77% of total loans while classified assets increased to $73.5 million or 12.10% of bank regulatory capital. Reserves as a percentage of loans increased to 1.24%.
- The Company announced a $0.15 dividend on outstanding common shares as of December 31, 2024. Our repurchase program remains active, though no shares were purchased during the quarter.
The Company is also pleased to announce the return of Greg Kossover to the executive management team. Mr. Kossover will be returning to the team in February and will lead our Capital Markets division while also retaining his role as a director of the Company and Equity Bank.
“Greg’s expertise, strategic vision, and commitment to excellence will be instrumental as we continue to drive growth and deliver exceptional value to our shareholders,” said Rick Sems, Equity Bank President & CEO. “We look forward to the positive impact Greg will undoubtedly have as we move forward together."
Equity Bancshares, Inc.
PRESS RELEASE
Financial Results for the Quarter Ended December 31, 2024
Net income allocable to common stockholders was $17.0 million, or $1.04 per diluted share. Excluding merger expenses and gains or losses on security transactions, net income was $20.3 million, or $1.31 per diluted share in the previous quarter. The drivers of the periodic change are discussed in detail in the following sections.
Net Interest Income
Net interest income was $49.5 million for the period, as compared to $46.0 million for previous quarter. Adjusting the stated number for non-recurring nonaccrual reversals and excess prepayment fee realization of $1.5 million, net interest income was $48.0 for the quarter. The periodic increase primarily was driven by downward re-pricing of liabilities which outpaced the downward re-pricing of assets in an environment that saw multiple interest rate cuts by the FOMC. For the quarter, cost of interest bearing liabilities were 2.80% for the quarter down 31 basis points from 3.11% while yield on interest earning assets was 6.32% up 2 basis points from 6.30%. Excluding the previously discussed non-recurring items, yield on interest earning assets would have been 6.20%.
Total earning assets declined slightly during the quarter as higher loan balances were offset by declining cash and security positions as excess cash flows were used to payoff debt and brokered funding versus reinvestment.
Provision for Credit Losses
During the quarter, there was a provision of $98 thousand compared to a provision of $1.2 million in the previous quarter. The level of provision was primarily attributable to charge-offs during the quarter offset by declining loan balances. The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower prepayment rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. During the quarter, we realized net charge-offs of $322 thousand as compared to $1.6 million for the previous quarter.
Non-Interest Income
Total non-interest income was $8.8 million for the quarter, as compared to $9.3 million linked quarter. Excluding the $831 thousand gain on acquisition from linked quarter results, non-interest income was up $330 thousand.
Non-Interest Expense
Total non-interest expense for the quarter was $37.8 million as compared to $30.3 million for the previous quarter. Prior quarter results included $8.5 million in benefit from a borrower’s repurchase of our preferred equity interest offset by a $742 thousand write-down on a previous bank location and $618 thousand in merger expense. Adjusting for these items, non-interest expense in the prior quarter would have been $37.4 million.
Income Tax Expense
The effective tax rate for the quarter ending, December 31, 2024, was 16.7% which remains consistent with the 16.7% reported for the prior quarter. The year-to-date effective tax rate is 20.0% as compared to 21.2% at September 30, 2024. The decrease in the year-to-date tax rate is associated with a decrease in the impact of tax rate reconciling items recognized as a percent of pre-tax book income, reductions in the effective state tax rate to align with state tax filings, and excess tax benefits related to stock compensation recognized in the quarter.
Loans, Total Assets and Funding
Loans held for investment were $3.5 billion at December 31, 2024, decreasing $100.1 million during the quarter. Total assets were $5.3 billion as of the end of the period, decreasing $23.2 million during the quarter.
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PRESS RELEASE
Total deposits were $4.4 billion at December 31, 2024, increasing $11.9 million from the previous quarter end. Of the total deposit balance, non-interest-bearing accounts comprise approximately 21.8%. Total Federal Home Loan Bank borrowings were $178.1 million as of the end of the quarter, down $117.9 million from previous quarter end.
Asset Quality
As of December 31, 2024, Equity’s allowance for credit losses to total loans was 1.2% up 3 basis points as compared to previous quarter end. Nonperforming assets were $34.7 million as of December 31, 2024, or 0.7% of total assets, compared to $32.4 million at September 30, 2024, or 0.6% of total assets. The increase was driven by one Main Street Lending Program loan which was foreclosed and is held in Other Real Estate Owned at its gross balance. Reducing this to reflect only the Bank’s portion (5%) would result in ending non-performing assets of $31.0 million. Non-accrual loans were $27.1 million at December 31, 2024, as compared to $31.3 million at September 30, 2024. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $73.5 million, or 12.1% of regulatory capital, up from $48.9 million, or 8.3% of regulatory capital as of September 30, 2024.
Capital
Quarter over quarter, book capital increased $88.9 million to $592.9 million and tangible capital increased $90.0 million to $523.9 million. Tangible book value per share closed the quarter at $30.07, increasing 6.0% compared to prior quarter. The increase in capital is primarily due to completion of a common stock capital raise in December through which the Company issued 2,067,240 shares at a price of $44.50. After accounting for costs to issue, the raise added $87.0 million in common equity capital. The remaining change to book and tangible capital during the quarter was attributable to earnings offset by an increase in unrealized losses reflected in AOCI.
The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the total capital to risk-weighted assets was 18.1% and the total leverage ratio was 11.7% at December 31, 2024. At September 30, 2024, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 11.4%, the total capital to risk-weighted assets ratio was 14.8% and the total leverage ratio was 9.6%.
Equity Bank's ratio of common equity tier 1 capital to risk-weighted assets was 14.1%, total capital to risk-weighted assets was 15.3% and the total leverage ratio was 10.9% at December 31, 2024. At September 30, 2024, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.0%, the ratio of total capital to risk-weighted assets was 14.1% and the total leverage ratio was 10.4%.
Non-GAAP Financial Measures
In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.
The efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. In other words, for every dollar of total revenue recognized, how much of that dollar is expended. To improve the comparability of the ratio to our peers, non-core items are excluded. To improve transparency and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure.
Return on average assets before income tax provision and provision for loan losses is a measure that the Company uses to understand fundamental operating performance before these expenses. Used as a ratio relative to average assets, we
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PRESS RELEASE
believe it demonstrates “core” performance and can be viewed as an alternative measure of how efficiently the Company services its asset base. Used as a ratio relative to average equity, it can function as an alternative measure of the Company’s earnings performance in relationship to its equity.
Tangible common equity and related measures are non-GAAP financial measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.
The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 6 in the following press release tables.
Conference Call and Webcast
Equity’s Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Chris Navratil, will hold a conference call and webcast to discuss fourth quarter results on Thursday, January 23, 2025, at 10 a.m. eastern time or 9 a.m. central time.
A live webcast of the call will be available on the Company’s website at investor.equitybank.com. To access the call by phone, please go to this registration link, and you will be provided with dial in details. Investors, news media, and other participants are encouraged to dial into the conference call ten minutes ahead of the scheduled start time.
A replay of the call and webcast will be available following the close of the call at investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NYSE National, Inc. under the symbol “EQBK.” Learn more at www.equitybank.com.
Special Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “positioned,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate
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PRESS RELEASE
policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.
For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2024, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.
Investor Contact:
Brian J. Katzfey
VP, Director of Corporate Development and Investor Relations
Equity Bancshares, Inc.
(316) 858-3128
bkatzfey@equitybank.com
Media Contact:
Russell Colburn
Public Relations and Communication Manager
Equity Bancshares, Inc.
(913) 583-8011
rcolburn@equitybank.com
Equity Bancshares, Inc.
PRESS RELEASE
Unaudited Financial Tables
- Table 1. Consolidated Statements of Income
- Table 2. Quarterly Consolidated Statements of Income
- Table 3. Consolidated Balance Sheets
- Table 4. Selected Financial Highlights
- Table 5. Year-To-Date Net Interest Income Analysis
- Table 6. Quarter-To-Date Net Interest Income Analysis
- Table 7. Quarter-Over-Quarter Net Interest Income Analysis
- Table 8. Non-GAAP Financial Measures
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PRESS RELEASE
| TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | ||||||||||||
| Three months ended<br>December 31, | Year ended<br>December 31, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Interest and dividend income | ||||||||||||
| Loans, including fees | $ | 63,379 | $ | 54,932 | $ | 245,815 | $ | 211,213 | ||||
| Securities, taxable | 9,229 | 6,417 | 39,091 | 23,873 | ||||||||
| Securities, nontaxable | 387 | 354 | 1,579 | 1,960 | ||||||||
| Federal funds sold and other | 1,984 | 2,591 | 10,358 | 9,666 | ||||||||
| Total interest and dividend income | 74,979 | 64,294 | 296,843 | 246,712 | ||||||||
| Interest expense | ||||||||||||
| Deposits | 21,213 | 20,074 | 90,409 | 70,473 | ||||||||
| Federal funds purchased and retail repurchase agreements | 258 | 298 | 1,151 | 931 | ||||||||
| Federal Home Loan Bank advances | 2,158 | 1,005 | 10,180 | 3,944 | ||||||||
| Federal Reserve Bank borrowings | — | 1,546 | 1,361 | 4,755 | ||||||||
| Subordinated debt | 1,877 | 1,904 | 7,580 | 7,591 | ||||||||
| Total interest expense | 25,506 | 24,827 | 110,681 | 87,694 | ||||||||
| Net interest income | 49,473 | 39,467 | 186,162 | 159,018 | ||||||||
| Provision (reversal) for credit losses | 98 | 711 | 2,546 | 1,873 | ||||||||
| Net interest income after provision (reversal) for credit losses | 49,375 | 38,756 | 183,616 | 157,145 | ||||||||
| Non-interest income | ||||||||||||
| Service charges and fees | 2,296 | 2,299 | 9,830 | 10,187 | ||||||||
| Debit card income | 2,513 | 2,524 | 10,246 | 10,322 | ||||||||
| Mortgage banking | 141 | 125 | 861 | 652 | ||||||||
| Increase in value of bank-owned life insurance | 1,883 | 925 | 4,966 | 4,059 | ||||||||
| Net gain on acquisition and branch sales | — | — | 2,131 | — | ||||||||
| Net gains (losses) from securities transactions | (2 | ) | (50,618 | ) | 220 | (51,909 | ) | |||||
| Other | 1,985 | 1,331 | 10,568 | 7,560 | ||||||||
| Total non-interest income | 8,816 | (43,414 | ) | 38,822 | (19,129 | ) | ||||||
| Non-interest expense | ||||||||||||
| Salaries and employee benefits | 18,368 | 16,598 | 72,786 | 64,384 | ||||||||
| Net occupancy and equipment | 3,571 | 3,244 | 14,371 | 12,325 | ||||||||
| Data processing | 4,988 | 4,471 | 20,004 | 17,433 | ||||||||
| Professional fees | 1,846 | 1,413 | 6,503 | 5,754 | ||||||||
| Advertising and business development | 1,469 | 1,598 | 5,366 | 5,425 | ||||||||
| Telecommunications | 614 | 460 | 2,501 | 1,963 | ||||||||
| FDIC insurance | 662 | 660 | 2,483 | 2,195 | ||||||||
| Courier and postage | 687 | 577 | 2,599 | 2,046 | ||||||||
| Free nationwide ATM cost | 558 | 508 | 2,127 | 2,073 | ||||||||
| Amortization of core deposit intangibles | 1,060 | 739 | 4,289 | 3,374 | ||||||||
| Loan expense | 154 | 155 | 601 | 540 | ||||||||
| Other real estate owned and repossessed assets, net | 133 | 274 | (7,525 | ) | 617 | |||||||
| Merger expenses | — | 297 | 4,461 | 297 | ||||||||
| Other | 3,696 | 4,004 | 13,591 | 17,175 | ||||||||
| Total non-interest expense | 37,806 | 34,998 | 144,157 | 135,601 | ||||||||
| Income (loss) before income tax | 20,385 | (39,656 | ) | 78,281 | 2,415 | |||||||
| Provision for income taxes (benefit) | 3,399 | (11,357 | ) | 15,660 | (5,406 | ) | ||||||
| Net income (loss) and net income (loss) allocable to common stockholders | $ | 16,986 | $ | (28,299 | ) | $ | 62,621 | $ | 7,821 | |||
| Basic earnings (loss) per share | $ | 1.06 | $ | (1.84 | ) | $ | 4.04 | $ | 0.50 | |||
| Diluted earnings (loss) per share | $ | 1.04 | $ | (1.84 | ) | $ | 4.00 | $ | 0.50 |
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| Weighted average common shares | 16,020,938 | 15,417,200 | 15,489,370 | 15,535,772 |
|---|---|---|---|---|
| Weighted average diluted common shares | 16,262,965 | 15,417,200 | 15,671,674 | 15,648,842 |
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| TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | |||||||||||||||
| As of and for the three months ended | |||||||||||||||
| December 31,<br>2024 | September 30,<br>2024 | June 30,<br>2024 | March 31,<br>2024 | December 31,<br>2023 | |||||||||||
| Interest and dividend income | |||||||||||||||
| Loans, including fees | $ | 63,379 | $ | 62,089 | $ | 61,518 | $ | 58,829 | $ | 54,932 | |||||
| Securities, taxable | 9,229 | 9,809 | 10,176 | 9,877 | 6,417 | ||||||||||
| Securities, nontaxable | 387 | 400 | 401 | 391 | 354 | ||||||||||
| Federal funds sold and other | 1,984 | 2,667 | 3,037 | 2,670 | 2,591 | ||||||||||
| Total interest and dividend income | 74,979 | 74,965 | 75,132 | 71,767 | 64,294 | ||||||||||
| Interest expense | |||||||||||||||
| Deposits | 21,213 | 23,679 | 22,662 | 22,855 | 20,074 | ||||||||||
| Federal funds purchased and retail repurchase agreements | 258 | 261 | 306 | 326 | 298 | ||||||||||
| Federal Home Loan Bank advances | 2,158 | 3,089 | 3,789 | 1,144 | 1,005 | ||||||||||
| Federal Reserve Bank borrowings | — | — | — | 1,361 | 1,546 | ||||||||||
| Subordinated debt | 1,877 | 1,905 | 1,899 | 1,899 | 1,904 | ||||||||||
| Total interest expense | 25,506 | 28,934 | 28,656 | 27,585 | 24,827 | ||||||||||
| Net interest income | 49,473 | 46,031 | 46,476 | 44,182 | 39,467 | ||||||||||
| Provision (reversal) for credit losses | 98 | 1,183 | 265 | 1,000 | 711 | ||||||||||
| Net interest income after provision (reversal) for credit losses | 49,375 | 44,848 | 46,211 | 43,182 | 38,756 | ||||||||||
| Non-interest income | |||||||||||||||
| Service charges and fees | 2,296 | 2,424 | 2,541 | 2,569 | 2,299 | ||||||||||
| Debit card income | 2,513 | 2,665 | 2,621 | 2,447 | 2,524 | ||||||||||
| Mortgage banking | 141 | 287 | 245 | 188 | 125 | ||||||||||
| Increase in value of bank-owned life insurance | 1,883 | 1,344 | 911 | 828 | 925 | ||||||||||
| Net gain on acquisition and branch sales | — | 831 | 60 | 1,240 | — | ||||||||||
| Net gains (losses) from securities transactions | (2 | ) | 206 | (27 | ) | 43 | (50,618 | ) | |||||||
| Other | 1,985 | 1,560 | 2,607 | 4,416 | 1,331 | ||||||||||
| Total non-interest income | 8,816 | 9,317 | 8,958 | 11,731 | (43,414 | ) | |||||||||
| Non-interest expense | |||||||||||||||
| Salaries and employee benefits | 18,368 | 18,494 | 17,827 | 18,097 | 16,598 | ||||||||||
| Net occupancy and equipment | 3,571 | 3,478 | 3,787 | 3,535 | 3,244 | ||||||||||
| Data processing | 4,988 | 5,152 | 5,036 | 4,828 | 4,471 | ||||||||||
| Professional fees | 1,846 | 1,487 | 1,778 | 1,392 | 1,413 | ||||||||||
| Advertising and business development | 1,469 | 1,368 | 1,291 | 1,238 | 1,598 | ||||||||||
| Telecommunications | 614 | 660 | 572 | 655 | 460 | ||||||||||
| FDIC insurance | 662 | 660 | 590 | 571 | 660 | ||||||||||
| Courier and postage | 687 | 686 | 620 | 606 | 577 | ||||||||||
| Free nationwide ATM cost | 558 | 544 | 531 | 494 | 508 | ||||||||||
| Amortization of core deposit intangibles | 1,060 | 1,112 | 1,218 | 899 | 739 | ||||||||||
| Loan expense | 154 | 143 | 195 | 109 | 155 | ||||||||||
| Other real estate owned and repossessed assets, net | 133 | (7,667 | ) | 50 | (41 | ) | 274 | ||||||||
| Merger expenses | — | 618 | 2,287 | 1,556 | 297 | ||||||||||
| Other | 3,696 | 3,593 | 3,089 | 3,213 | 4,004 | ||||||||||
| Total non-interest expense | 37,806 | 30,328 | 38,871 | 37,152 | 34,998 | ||||||||||
| Income (loss) before income tax | 20,385 | 23,837 | 16,298 | 17,761 | (39,656 | ) | |||||||||
| Provision for income taxes (benefit) | 3,399 | 3,986 | 4,582 | 3,693 | (11,357 | ) | |||||||||
| Net income (loss) and net income (loss) allocable to common stockholders | $ | 16,986 | $ | 19,851 | $ | 11,716 | $ | 14,068 | $ | (28,299 | ) | ||||
| Basic earnings (loss) per share | $ | 1.06 | $ | 1.30 | $ | 0.77 | $ | 0.91 | $ | (1.84 | ) | ||||
| Diluted earnings (loss) per share | $ | 1.04 | $ | 1.28 | $ | 0.76 | $ | 0.90 | $ | (1.84 | ) | ||||
| Weighted average common shares | 16,020,938 | 15,258,822 | 15,248,703 | 15,425,709 | 15,417,200 | ||||||||||
| Weighted average diluted common shares | 16,262,965 | 15,451,545 | 15,377,980 | 15,569,225 | 15,417,200 |
Equity Bancshares, Inc.
PRESS RELEASE
TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
| December 31,<br> 2024 | September 30,<br> 2024 | June 30,<br> 2024 | March 31,<br> 2024 | December 31,<br>2023 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 383,503 | $ | 217,681 | $ | 244,321 | $ | 217,611 | $ | 363,289 | |||||
| Federal funds sold | 244 | 17,802 | 15,945 | 17,407 | 15,810 | ||||||||||
| Cash and cash equivalents | 383,747 | 235,483 | 260,266 | 235,018 | 379,099 | ||||||||||
| Available-for-sale securities | 1,004,455 | 1,041,000 | 1,042,176 | 1,091,717 | 919,648 | ||||||||||
| Held-to-maturity securities | 5,217 | 5,408 | 5,226 | 2,205 | 2,209 | ||||||||||
| Loans held for sale | 513 | 901 | 1,959 | 1,311 | 476 | ||||||||||
| Loans, net of allowance for credit losses(1) | 3,457,549 | 3,557,435 | 3,410,920 | 3,437,714 | 3,289,381 | ||||||||||
| Other real estate owned, net | 4,773 | 2,786 | 2,989 | 1,465 | 1,833 | ||||||||||
| Premises and equipment, net | 117,132 | 117,013 | 114,264 | 116,792 | 112,632 | ||||||||||
| Bank-owned life insurance | 133,032 | 131,670 | 130,326 | 125,693 | 124,865 | ||||||||||
| Federal Reserve Bank and Federal Home Loan Bank stock | 27,875 | 34,429 | 33,171 | 27,009 | 20,608 | ||||||||||
| Interest receivable | 28,913 | 28,398 | 27,381 | 27,082 | 25,497 | ||||||||||
| Goodwill | 53,101 | 53,101 | 53,101 | 53,101 | 53,101 | ||||||||||
| Core deposit intangibles, net | 14,969 | 16,029 | 16,636 | 17,854 | 7,222 | ||||||||||
| Other | 100,771 | 131,580 | 147,102 | 102,075 | 98,021 | ||||||||||
| Total assets | $ | 5,332,047 | $ | 5,355,233 | $ | 5,245,517 | $ | 5,239,036 | $ | 5,034,592 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
| Deposits | |||||||||||||||
| Demand | $ | 954,065 | $ | 967,858 | $ | 984,872 | $ | 981,623 | $ | 898,129 | |||||
| Total non-interest-bearing deposits | 954,065 | 967,858 | 984,872 | 981,623 | 898,129 | ||||||||||
| Demand, savings and money market | 2,684,197 | 2,468,956 | 2,560,091 | 2,574,871 | 2,483,807 | ||||||||||
| Time | 736,527 | 926,130 | 796,474 | 814,532 | 763,519 | ||||||||||
| Total interest-bearing deposits | 3,420,724 | 3,395,086 | 3,356,565 | 3,389,403 | 3,247,326 | ||||||||||
| Total deposits | 4,374,789 | 4,362,944 | 4,341,437 | 4,371,026 | 4,145,455 | ||||||||||
| Federal funds purchased and retail repurchase agreements | 37,246 | 38,196 | 38,031 | 43,811 | 43,582 | ||||||||||
| Federal Home Loan Bank advances and Federal Reserve Bank borrowings | 178,073 | 295,997 | 250,306 | 219,931 | 240,000 | ||||||||||
| Subordinated debt | 97,477 | 97,336 | 97,196 | 97,058 | 96,921 | ||||||||||
| Contractual obligations | 12,067 | 19,683 | 23,770 | 18,493 | 19,315 | ||||||||||
| Interest payable and other liabilities | 39,477 | 37,039 | 33,342 | 31,941 | 36,459 | ||||||||||
| Total liabilities | 4,739,129 | 4,851,195 | 4,784,082 | 4,782,260 | 4,581,732 | ||||||||||
| Commitments and contingent liabilities | |||||||||||||||
| Stockholders’ equity | |||||||||||||||
| Common stock | 230 | 209 | 208 | 208 | 207 | ||||||||||
| Additional paid-in capital | 584,424 | 494,763 | 491,709 | 490,533 | 489,187 | ||||||||||
| Retained earnings | 194,920 | 180,588 | 163,068 | 153,201 | 141,006 | ||||||||||
| Accumulated other comprehensive income (loss), net of tax | (55,181 | ) | (40,012 | ) | (62,005 | ) | (60,788 | ) | (57,920 | ) | |||||
| Treasury stock | (131,475 | ) | (131,510 | ) | (131,545 | ) | (126,378 | ) | (119,620 | ) | |||||
| Total stockholders’ equity | 592,918 | 504,038 | 461,435 | 456,776 | 452,860 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 5,332,047 | $ | 5,355,233 | $ | 5,245,517 | $ | 5,239,036 | $ | 5,034,592 | |||||
| (1) Allowance for credit losses | $ | 43,267 | $ | 43,490 | $ | 43,487 | $ | 44,449 | $ | 43,520 |
Equity Bancshares, Inc.
PRESS RELEASE
| TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | |||||||||||||||
| As of and for the three months ended | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
| Loans Held For Investment by Type | |||||||||||||||
| Commercial real estate | $ | 1,830,514 | $ | 1,916,863 | $ | 1,793,544 | $ | 1,797,192 | $ | 1,759,855 | |||||
| Commercial and industrial | 658,865 | 670,665 | 663,718 | 649,035 | 598,327 | ||||||||||
| Residential real estate | 566,766 | 567,063 | 572,523 | 581,988 | 556,328 | ||||||||||
| Agricultural real estate | 267,248 | 259,587 | 219,226 | 198,291 | 196,114 | ||||||||||
| Agricultural | 87,339 | 89,529 | 104,342 | 149,312 | 118,587 | ||||||||||
| Consumer | 90,084 | 97,218 | 101,054 | 106,345 | 103,690 | ||||||||||
| Total loans held-for-investment | 3,500,816 | 3,600,925 | 3,454,407 | 3,482,163 | 3,332,901 | ||||||||||
| Allowance for credit losses | (43,267 | ) | (43,490 | ) | (43,487 | ) | (44,449 | ) | (43,520 | ) | |||||
| Net loans held for investment | $ | 3,457,549 | $ | 3,557,435 | $ | 3,410,920 | $ | 3,437,714 | $ | 3,289,381 | |||||
| Asset Quality Ratios | |||||||||||||||
| Allowance for credit losses on loans to total loans | 1.24 | % | 1.21 | % | 1.26 | % | 1.28 | % | 1.31 | % | |||||
| Past due or nonaccrual loans to total loans | 1.14 | % | 1.17 | % | 1.15 | % | 1.10 | % | 1.10 | % | |||||
| Nonperforming assets to total assets | 0.65 | % | 0.60 | % | 0.52 | % | 0.49 | % | 0.53 | % | |||||
| Nonperforming assets to total loans plus other<br> real estate owned | 0.99 | % | 0.90 | % | 0.79 | % | 0.73 | % | 0.79 | % | |||||
| Classified assets to bank total regulatory capital | 12.10 | % | 8.32 | % | 8.47 | % | 6.85 | % | 7.09 | % | |||||
| Selected Average Balance Sheet Data (QTD Average) | |||||||||||||||
| Investment securities | $ | 1,012,698 | $ | 1,055,833 | $ | 1,065,979 | $ | 1,074,101 | $ | 985,591 | |||||
| Total gross loans receivable | 3,525,765 | 3,475,885 | 3,459,476 | 3,452,553 | 3,293,755 | ||||||||||
| Interest-earning assets | 4,716,295 | 4,731,927 | 4,745,713 | 4,742,200 | 4,480,279 | ||||||||||
| Total assets | 5,163,166 | 5,205,017 | 5,196,259 | 5,152,915 | 4,892,712 | ||||||||||
| Interest-bearing deposits | 3,280,592 | 3,309,202 | 3,275,765 | 3,319,907 | 3,092,637 | ||||||||||
| Borrowings | 340,042 | 395,190 | 450,178 | 390,166 | 391,691 | ||||||||||
| Total interest-bearing liabilities | 3,620,634 | 3,704,392 | 3,725,943 | 3,710,073 | 3,484,328 | ||||||||||
| Total deposits | 4,243,159 | 4,275,424 | 4,250,843 | 4,254,883 | 4,019,362 | ||||||||||
| Total liabilities | 4,629,939 | 4,719,549 | 4,740,937 | 4,692,671 | 4,469,505 | ||||||||||
| Total stockholders' equity | 533,227 | 485,468 | 455,322 | 460,244 | 423,207 | ||||||||||
| Tangible common equity* | 463,657 | 414,644 | 383,899 | 398,041 | 361,451 | ||||||||||
| Performance ratios | |||||||||||||||
| Return on average assets (ROAA) annualized | 1.31 | % | 1.52 | % | 0.91 | % | 1.10 | % | (2.29 | )% | |||||
| Core return on average assets* | 1.37 | % | 1.56 | % | 1.25 | % | 1.17 | % | 1.01 | % | |||||
| Core return on average assets before income tax and<br> provision for loan losses* | 1.66 | % | 1.97 | % | 1.55 | % | 1.56 | % | 1.03 | % | |||||
| Return on average equity (ROAE) annualized | 12.67 | % | 16.27 | % | 10.35 | % | 12.29 | % | (26.53 | )% | |||||
| Core return on average equity* | 13.29 | % | 16.73 | % | 14.25 | % | 13.11 | % | 11.21 | % | |||||
| Core return on average equity before income tax and<br> provision for loan losses* | 16.01 | % | 20.97 | % | 17.57 | % | 17.34 | % | 11.40 | % | |||||
| Return on average tangible common equity<br> (ROATCE) annualized* | 15.30 | % | 19.92 | % | 13.31 | % | 14.96 | % | (30.39 | )% | |||||
| Core return on average tangible common equity* | 15.29 | % | 19.58 | % | 16.89 | % | 15.16 | % | 13.02 | % | |||||
| Yield on loans annualized | 7.15 | % | 7.11 | % | 7.15 | % | 6.85 | % | 6.62 | % | |||||
| Cost of interest-bearing deposits annualized | 2.57 | % | 2.85 | % | 2.78 | % | 2.77 | % | 2.58 | % | |||||
| Cost of total deposits annualized | 1.99 | % | 2.20 | % | 2.14 | % | 2.16 | % | 1.98 | % | |||||
| Net interest margin annualized | 4.17 | % | 3.87 | % | 3.94 | % | 3.75 | % | 3.49 | % | |||||
| Efficiency ratio* | 63.02 | % | 52.59 | % | 63.77 | % | 63.45 | % | 72.69 | % | |||||
| Non-interest income / average assets | 0.68 | % | 0.71 | % | 0.69 | % | 0.92 | % | (3.52 | )% |
Equity Bancshares, Inc.
PRESS RELEASE
| Non-interest expense / average assets | 2.91 | % | 2.32 | % | 3.01 | % | 2.90 | % | 2.84 | % | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Core non-interest expense / average assets* | 2.83 | % | 2.18 | % | 2.73 | % | 2.71 | % | 2.75 | % | |||||
| Capital Ratios | |||||||||||||||
| Tier 1 Leverage Ratio | 11.67 | % | 9.55 | % | 9.14 | % | 9.10 | % | 9.46 | % | |||||
| Common Equity Tier 1 Capital Ratio | 14.51 | % | 11.37 | % | 11.12 | % | 11.14 | % | 11.74 | % | |||||
| Tier 1 Risk Based Capital Ratio | 15.11 | % | 11.94 | % | 11.70 | % | 11.73 | % | 12.36 | % | |||||
| Total Risk Based Capital Ratio | 18.07 | % | 14.78 | % | 14.61 | % | 14.71 | % | 15.48 | % | |||||
| Total stockholders' equity to total assets | 11.12 | % | 9.41 | % | 8.80 | % | 8.72 | % | 8.99 | % | |||||
| Tangible common equity to tangible assets* | 9.95 | % | 8.21 | % | 7.55 | % | 7.45 | % | 7.87 | % | |||||
| Dividend payout ratio | 15.62 | % | 11.74 | % | 15.79 | % | 13.31 | % | (6.65 | )% | |||||
| Book value per common share | $ | 34.04 | $ | 32.97 | $ | 30.36 | $ | 29.80 | $ | 29.35 | |||||
| Tangible book value per common share* | $ | 30.07 | $ | 28.38 | $ | 25.70 | $ | 25.10 | $ | 25.37 | |||||
| Tangible book value per diluted common share* | $ | 29.70 | $ | 28.00 | $ | 25.44 | $ | 24.87 | $ | 25.05 | |||||
| Core earnings per diluted share* | $ | 1.10 | $ | 1.32 | $ | 1.05 | $ | 0.96 | $ | 0.81 | |||||
| Core pre-tax pre-provision earnings per diluted share* | $ | 1.33 | $ | 1.67 | $ | 1.31 | $ | 1.28 | $ | 0.83 | |||||
| * The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 8. Non-GAAP Financial Measures. |
Equity Bancshares, Inc.
PRESS RELEASE
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
| For the year ended | For the year ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | |||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | |||||||||
| Interest-earning assets | ||||||||||||||
| Loans (1) | ||||||||||||||
| Commercial and industrial | $ | 635,881 | $ | 51,188 | 8.05 | % | $ | 580,451 | $ | 42,901 | 7.39 | % | ||
| Commercial real estate | 1,400,661 | 99,316 | 7.09 | % | 1,302,568 | 83,441 | 6.41 | % | ||||||
| Real estate construction | 416,296 | 36,004 | 8.65 | % | 447,516 | 33,764 | 7.54 | % | ||||||
| Residential real estate | 563,176 | 26,505 | 4.71 | % | 565,711 | 23,799 | 4.21 | % | ||||||
| Agricultural real estate | 227,341 | 16,848 | 7.41 | % | 201,326 | 13,820 | 6.86 | % | ||||||
| Agricultural | 96,877 | 9,103 | 9.40 | % | 100,394 | 6,966 | 6.94 | % | ||||||
| Consumer | 100,995 | 6,851 | 6.78 | % | 106,542 | 6,522 | 6.12 | % | ||||||
| Total loans | 3,441,227 | 245,815 | 7.14 | % | 3,304,508 | 211,213 | 6.39 | % | ||||||
| Securities | ||||||||||||||
| Taxable securities | 979,926 | 39,091 | 3.99 | % | 1,027,726 | 23,873 | 2.32 | % | ||||||
| Nontaxable securities | 59,597 | 1,579 | 2.65 | % | 74,917 | 1,960 | 2.62 | % | ||||||
| Total securities | 1,039,523 | 40,670 | 3.91 | % | 1,102,643 | 25,833 | 2.34 | % | ||||||
| Federal funds sold and other | 195,378 | 10,358 | 5.30 | % | 193,941 | 9,666 | 4.98 | % | ||||||
| Total interest-earning assets | $ | 4,676,128 | 296,843 | 6.35 | % | $ | 4,601,092 | 246,712 | 5.36 | % | ||||
| Interest-bearing liabilities | ||||||||||||||
| Demand, savings and money market deposits | $ | 2,453,139 | 61,518 | 2.51 | % | $ | 2,362,365 | 46,206 | 1.96 | % | ||||
| Time deposits | 770,772 | 28,891 | 3.75 | % | 827,652 | 24,267 | 2.93 | % | ||||||
| Total interest-bearing deposits | 3,223,911 | 90,409 | 2.80 | % | 3,190,017 | 70,473 | 2.21 | % | ||||||
| FHLB advances | 216,012 | 10,180 | 4.71 | % | 98,380 | 3,944 | 4.01 | % | ||||||
| Other borrowings | 175,516 | 10,092 | 5.75 | % | 254,666 | 13,277 | 5.21 | % | ||||||
| Total interest-bearing liabilities | $ | 3,615,439 | 110,681 | 3.06 | % | $ | 3,543,063 | 87,694 | 2.48 | % | ||||
| Net interest income | $ | 186,162 | $ | 159,018 | ||||||||||
| Interest rate spread | 3.29 | % | 2.88 | % | ||||||||||
| Net interest margin (2) | 3.98 | % | 3.46 | % | ||||||||||
| (1) Average loan balances include nonaccrual loans. | ||||||||||||||
| (2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. | ||||||||||||||
| (3) Tax exempt income is not included in the above table on a tax-equivalent basis. | ||||||||||||||
| (4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Equity Bancshares, Inc.
PRESS RELEASE
TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
| For the three months ended | For the three months ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | |||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | |||||||||
| Interest-earning assets | ||||||||||||||
| Loans (1) | ||||||||||||||
| Commercial and industrial | $ | 651,733 | $ | 12,780 | 7.80 | % | $ | 580,726 | $ | 11,397 | 7.79 | % | ||
| Commercial real estate | 1,402,966 | 25,978 | 7.37 | % | 1,309,588 | 21,630 | 6.55 | % | ||||||
| Real estate construction | 463,885 | 9,654 | 8.28 | % | 439,708 | 9,000 | 8.12 | % | ||||||
| Residential real estate | 567,123 | 6,571 | 4.61 | % | 561,382 | 5,866 | 4.15 | % | ||||||
| Agricultural real estate | 262,529 | 5,071 | 7.68 | % | 196,468 | 3,421 | 6.91 | % | ||||||
| Agricultural | 82,986 | 1,705 | 8.17 | % | 100,226 | 1,928 | 7.63 | % | ||||||
| Consumer | 94,543 | 1,620 | 6.82 | % | 105,657 | 1,690 | 6.35 | % | ||||||
| Total loans | 3,525,765 | 63,379 | 7.15 | % | 3,293,755 | 54,932 | 6.62 | % | ||||||
| Securities | ||||||||||||||
| Taxable securities | 953,627 | 9,229 | 3.85 | % | 932,376 | 6,417 | 2.73 | % | ||||||
| Nontaxable securities | 59,071 | 387 | 2.61 | % | 53,215 | 354 | 2.64 | % | ||||||
| Total securities | 1,012,698 | 9,616 | 3.78 | % | 985,591 | 6,771 | 2.73 | % | ||||||
| Federal funds sold and other | 177,832 | 1,984 | 4.44 | % | 200,933 | 2,591 | 5.12 | % | ||||||
| Total interest-earning assets | $ | 4,716,295 | 74,979 | 6.32 | % | $ | 4,480,279 | 64,294 | 5.69 | % | ||||
| Interest-bearing liabilities | ||||||||||||||
| Demand, savings and money market deposits | $ | 2,448,539 | 13,429 | 2.18 | % | $ | 2,351,663 | 13,918 | 2.35 | % | ||||
| Time deposits | 832,053 | 7,784 | 3.72 | % | 740,974 | 6,156 | 3.30 | % | ||||||
| Total interest-bearing deposits | 3,280,592 | 21,213 | 2.57 | % | 3,092,637 | 20,074 | 2.58 | % | ||||||
| FHLB advances | 194,914 | 2,158 | 4.41 | % | 102,432 | 1,005 | 3.89 | % | ||||||
| Other borrowings | 145,128 | 2,135 | 5.86 | % | 289,259 | 3,748 | 5.14 | % | ||||||
| Total interest-bearing liabilities | $ | 3,620,634 | 25,506 | 2.80 | % | $ | 3,484,328 | 24,827 | 2.83 | % | ||||
| Net interest income | $ | 49,473 | $ | 39,467 | ||||||||||
| Interest rate spread | 3.52 | % | 2.86 | % | ||||||||||
| Net interest margin (2) | 4.17 | % | 3.49 | % | ||||||||||
| (1) Average loan balances include nonaccrual loans. | ||||||||||||||
| (2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. | ||||||||||||||
| (3) Tax exempt income is not included in the above table on a tax-equivalent basis. | ||||||||||||||
| (4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Equity Bancshares, Inc.
PRESS RELEASE
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
| For the three months ended | For the three months ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2024 | September 30, 2024 | |||||||||||||
| Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | Average Outstanding Balance | Interest Income/ Expense | Average<br>Yield/Rate(3)(4) | |||||||||
| Interest-earning assets | ||||||||||||||
| Loans (1) | ||||||||||||||
| Commercial and industrial | $ | 651,733 | $ | 12,780 | 7.80 | % | $ | 659,697 | $ | 13,213 | 7.97 | % | ||
| Commercial real estate | 1,402,966 | 25,978 | 7.37 | % | 1,351,407 | 24,196 | 7.12 | % | ||||||
| Real estate construction | 463,885 | 9,654 | 8.28 | % | 442,857 | 9,732 | 8.74 | % | ||||||
| Residential real estate | 567,123 | 6,571 | 4.61 | % | 578,702 | 6,912 | 4.75 | % | ||||||
| Agricultural real estate | 262,529 | 5,071 | 7.68 | % | 251,595 | 4,365 | 6.90 | % | ||||||
| Agricultural | 82,986 | 1,705 | 8.17 | % | 91,500 | 1,906 | 8.29 | % | ||||||
| Consumer | 94,543 | 1,620 | 6.82 | % | 100,127 | 1,765 | 7.01 | % | ||||||
| Total loans | 3,525,765 | 63,379 | 7.15 | % | 3,475,885 | 62,089 | 7.11 | % | ||||||
| Securities | ||||||||||||||
| Taxable securities | 953,627 | 9,229 | 3.85 | % | 995,713 | 9,809 | 3.92 | % | ||||||
| Nontaxable securities | 59,071 | 387 | 2.61 | % | 60,120 | 400 | 2.65 | % | ||||||
| Total securities | 1,012,698 | 9,616 | 3.78 | % | 1,055,833 | 10,209 | 3.85 | % | ||||||
| Federal funds sold and other | 177,832 | 1,984 | 4.44 | % | 200,209 | 2,667 | 5.30 | % | ||||||
| Total interest-earning assets | $ | 4,716,295 | 74,979 | 6.32 | % | $ | 4,731,927 | 74,965 | 6.30 | % | ||||
| Interest-bearing liabilities | ||||||||||||||
| Demand savings and money market deposits | $ | 2,448,539 | 13,429 | 2.18 | % | $ | 2,555,916 | 16,484 | 2.57 | % | ||||
| Time deposits | 832,053 | 7,784 | 3.72 | % | 753,286 | 7,195 | 3.80 | % | ||||||
| Total interest-bearing deposits | 3,280,592 | 21,213 | 2.57 | % | 3,309,202 | 23,679 | 2.85 | % | ||||||
| FHLB advances | 194,914 | 2,158 | 4.41 | % | 252,751 | 3,089 | 4.86 | % | ||||||
| Other borrowings | 145,128 | 2,135 | 5.86 | % | 142,439 | 2,166 | 6.05 | % | ||||||
| Total interest-bearing liabilities | $ | 3,620,634 | 25,506 | 2.80 | % | $ | 3,704,392 | 28,934 | 3.11 | % | ||||
| Net interest income | $ | 49,473 | $ | 46,031 | ||||||||||
| Interest rate spread | 3.52 | % | 3.19 | % | ||||||||||
| Net interest margin (2) | 4.17 | % | 3.87 | % | ||||||||||
| (1) Average loan balances include nonaccrual loans. | ||||||||||||||
| (2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. | ||||||||||||||
| (3) Tax exempt income is not included in the above table on a tax-equivalent basis. | ||||||||||||||
| (4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Equity Bancshares, Inc.
PRESS RELEASE
| TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | |||||||||||||||
| As of and for the three months ended | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||
| Total stockholders' equity | $ | 592,918 | $ | 504,038 | $ | 461,435 | $ | 456,776 | $ | 452,860 | |||||
| Less: goodwill | 53,101 | 53,101 | 53,101 | 53,101 | 53,101 | ||||||||||
| Less: core deposit intangibles, net | 14,969 | 16,029 | 16,636 | 17,854 | 7,222 | ||||||||||
| Less: mortgage servicing rights, net | — | — | 25 | 50 | 75 | ||||||||||
| Less: naming rights, net | 957 | 968 | 979 | 989 | 1,000 | ||||||||||
| Tangible common equity | $ | 523,891 | $ | 433,940 | $ | 390,694 | $ | 384,782 | $ | 391,462 | |||||
| Common shares outstanding at period end | 17,419,858 | 15,288,309 | 15,200,194 | 15,327,799 | 15,428,251 | ||||||||||
| Diluted common shares outstanding at period end | 17,636,843 | 15,497,466 | 15,358,396 | 15,469,531 | 15,629,185 | ||||||||||
| Book value per common share | $ | 34.04 | $ | 32.97 | $ | 30.36 | $ | 29.80 | $ | 29.35 | |||||
| Tangible book value per common share | $ | 30.07 | $ | 28.38 | $ | 25.70 | $ | 25.10 | $ | 25.37 | |||||
| Tangible book value per diluted common share | $ | 29.70 | $ | 28.00 | $ | 25.44 | $ | 24.87 | $ | 25.05 | |||||
| Total assets | $ | 5,332,047 | $ | 5,355,233 | $ | 5,245,517 | $ | 5,239,036 | $ | 5,034,592 | |||||
| Less: goodwill | 53,101 | 53,101 | 53,101 | 53,101 | 53,101 | ||||||||||
| Less: core deposit intangibles, net | 14,969 | 16,029 | 16,636 | 17,854 | 7,222 | ||||||||||
| Less: mortgage servicing rights, net | — | — | 25 | 50 | 75 | ||||||||||
| Less: naming rights, net | 957 | 968 | 979 | 989 | 1,000 | ||||||||||
| Tangible assets | $ | 5,263,020 | $ | 5,285,135 | $ | 5,174,776 | $ | 5,167,042 | $ | 4,973,194 | |||||
| Total stockholders' equity to total assets | 11.12 | % | 9.41 | % | 8.80 | % | 8.72 | % | 8.99 | % | |||||
| Tangible common equity to tangible assets | 9.95 | % | 8.21 | % | 7.55 | % | 7.45 | % | 7.87 | % | |||||
| Total average stockholders' equity | $ | 533,227 | $ | 485,468 | $ | 455,322 | $ | 460,244 | $ | 423,207 | |||||
| Less: average intangible assets | 69,570 | 70,824 | 71,423 | 62,203 | 61,756 | ||||||||||
| Average tangible common equity | $ | 463,657 | $ | 414,644 | $ | 383,899 | $ | 398,041 | $ | 361,451 | |||||
| Net income (loss) allocable to common stockholders | $ | 16,986 | $ | 19,851 | $ | 11,716 | $ | 14,068 | $ | (28,299 | ) | ||||
| Less: net gain on acquisition | — | 831 | 60 | 1,240 | — | ||||||||||
| Less: net gain (loss) on securities transactions | (2 | ) | 206 | (27 | ) | 43 | (50,618 | ) | |||||||
| Add: merger expenses | — | 618 | 2,287 | 1,556 | 297 | ||||||||||
| Add: BOLI tax expense | — | — | 1,730 | — | — | ||||||||||
| Add: amortization of intangible assets | 1,071 | 1,148 | 1,254 | 935 | 775 | ||||||||||
| Less: tax effect of pre-tax adjustments | 225 | 153 | 737 | 254 | 10,855 | ||||||||||
| Core net income (loss) allocable to common<br> stockholders | $ | 17,834 | $ | 20,427 | $ | 16,217 | $ | 15,022 | $ | 12,536 | |||||
| Return on total average stockholders' equity<br> (ROAE) annualized | 12.67 | % | 16.27 | % | 10.35 | % | 12.29 | % | (26.53 | )% | |||||
| Average tangible common equity | $ | 463,657 | $ | 414,644 | $ | 383,899 | $ | 398,041 | $ | 361,451 | |||||
| Average impact from core earnings adjustments | 424 | 288 | 2,251 | 477 | 20,418 | ||||||||||
| Core average tangible common equity | $ | 464,081 | $ | 414,932 | $ | 386,150 | $ | 398,518 | $ | 381,869 | |||||
| Return on average tangible common equity<br> (ROATCE) annualized | 15.30 | % | 19.92 | % | 13.31 | % | 14.96 | % | (30.39 | )% | |||||
| Core return on average tangible common equity<br> (CROATCE) annualized | 15.29 | % | 19.58 | % | 16.89 | % | 15.16 | % | 13.02 | % |
Equity Bancshares, Inc.
PRESS RELEASE
| Non-interest expense | $ | 37,806 | $ | 30,328 | $ | 38,871 | $ | 37,152 | $ | 34,998 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Less: merger expense | — | 618 | 2,287 | 1,556 | 297 | ||||||||||
| Less: amortization of intangible assets | 1,071 | 1,148 | 1,254 | 935 | 775 | ||||||||||
| Adjusted non-interest expense | $ | 36,735 | $ | 28,562 | $ | 35,330 | $ | 34,661 | $ | 33,926 | |||||
| Net interest income | $ | 49,473 | $ | 46,031 | $ | 46,476 | $ | 44,182 | $ | 39,467 | |||||
| Non-interest income | 8,816 | 9,317 | 8,958 | 11,731 | (43,414 | ) | |||||||||
| Less: net gain on acquisition and branch sales | — | 831 | 60 | 1,240 | — | ||||||||||
| Less: net gains (losses) from securities transactions | (2 | ) | 206 | (27 | ) | 43 | (50,618 | ) | |||||||
| Adjusted non-interest income | $ | 8,818 | $ | 8,280 | $ | 8,925 | $ | 10,448 | $ | 7,204 | |||||
| Net interest income plus adjusted non-interest income | $ | 58,291 | $ | 54,311 | $ | 55,401 | $ | 54,630 | $ | 46,671 | |||||
| Non-interest expense to<br> net interest income plus non-interest income | 64.86 | % | 54.80 | % | 70.12 | % | 66.45 | % | (886.70 | )% | |||||
| Efficiency ratio | 63.02 | % | 52.59 | % | 63.77 | % | 63.45 | % | 72.69 | % | |||||
| Average assets | 5,163,166 | 5,205,017 | 5,196,259 | 5,152,915 | 4,892,712 | ||||||||||
| Core non-interest expense to average assets | 2.83 | % | 2.18 | % | 2.73 | % | 2.71 | % | 2.75 | % | |||||
| Net income (loss) allocable to common stockholders | $ | 16,986 | $ | 19,851 | $ | 11,716 | $ | 14,068 | $ | (28,299 | ) | ||||
| Less: net gain on acquisition | — | 831 | 60 | 1,240 | — | ||||||||||
| Less: net gain (loss) on securities transactions | (2 | ) | 206 | (27 | ) | 43 | (50,618 | ) | |||||||
| Add: merger expenses | — | 618 | 2,287 | 1,556 | 297 | ||||||||||
| Add: BOLI tax expense | — | — | 1,730 | — | — | ||||||||||
| Add: amortization of intangible assets | 1,071 | 1,148 | 1,254 | 935 | 775 | ||||||||||
| Less: tax effect of intangible assets amortization | 225 | 153 | 737 | 254 | 10,855 | ||||||||||
| Core net income (loss) allocable to common<br> stockholders | $ | 17,834 | $ | 20,427 | $ | 16,217 | $ | 15,022 | $ | 12,536 | |||||
| Add: income tax provision | 3,399 | 3,986 | 4,582 | 3,693 | (11,357 | ) | |||||||||
| Add: provision (reversal) of credit losses | 98 | 1,183 | 265 | 1,000 | 711 | ||||||||||
| Add: tax effect of pre-tax adjustments | 225 | 153 | 737 | 254 | 10,855 | ||||||||||
| Core pre-tax, pre-provision income | $ | 21,556 | $ | 25,749 | $ | 21,801 | $ | 19,969 | $ | 12,745 | |||||
| Total average assets | $ | 5,163,166 | $ | 5,205,017 | $ | 5,196,259 | $ | 5,152,915 | $ | 4,892,712 | |||||
| Total average stockholders' equity | $ | 533,227 | $ | 485,468 | $ | 455,322 | $ | 460,244 | $ | 423,207 | |||||
| Weighted average diluted common shares | 16,262,965 | 15,451,545 | 15,377,980 | 15,569,225 | 15,417,200 | ||||||||||
| Diluted earnings (loss) per share | $ | 1.04 | $ | 1.28 | $ | 0.76 | $ | 0.90 | $ | (1.84 | ) | ||||
| Core earnings per diluted share | $ | 1.10 | $ | 1.32 | $ | 1.05 | $ | 0.96 | $ | 0.81 | |||||
| Core pre-tax pre-provision earnings per diluted share | $ | 1.33 | $ | 1.67 | $ | 1.31 | $ | 1.28 | $ | 0.83 | |||||
| Return on average assets (ROAA) annualized | 1.31 | % | 1.52 | % | 0.91 | % | 1.10 | % | (2.29 | )% | |||||
| Core return on average assets | 1.37 | % | 1.56 | % | 1.25 | % | 1.17 | % | 1.01 | % | |||||
| Return on average equity | 12.67 | % | 16.27 | % | 10.35 | % | 12.29 | % | (26.53 | )% | |||||
| Core return on average equity | 13.29 | % | 16.73 | % | 14.25 | % | 13.11 | % | 11.21 | % |
Exhibit 99.2
This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of the management of Equity Bancshares, Inc. (“Equity,” “we,” “us,” “our,” “the company”) with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2024, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding. Forward Looking Statements
Equity Bancshares, Inc.| NYSE: EQBK Market Cap as of 1/21/2025 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Compound Annual Growth Rate since EQBK was founded in 2002 Strategic Execution Of Acquisitions SCALE 12 Completed Bank Acquisitions SINCE IPO 2002 2008 2015 2024 START-UP 4 acquisitions GROWTH 4 acquisitions IPO $380M $5.3B 26.6% Compound Annual Growth Rate3 Company Overview $5.3B Assets $3.5B Loans $4.4B Deposits $748M Market Cap1 9.95% TCE/TA2 14.51% CET 1 18.07% TRBC WICHITA Headquarters $1.6B
Leadership Team Brad Elliott Equity Bancshares, Inc. Chairman & CEO Years in Banking: 36 Founded Equity Bank in 2002 2018 EY Entrepreneur of the Year National Finalist 2014 Most Influential CEO, Wichita Business Journal Chris Navratil Chief Financial Officer Years in Banking: 14 Promoted to Chief Financial Officer in August 2023. Previously served as Bank CFO and prior to Equity, spent 7 years within the Financial Institution Audit Practice with Crowe LLP Brett Reber General Counsel Years in Law: 37 Prior to joining Equity Bank, he served as Managing Member of the Wise & Reber, L.C. law firm. Brett has practiced corporate and business law for over 30 years. David Pass Chief Information Officer Years in Banking: 24 Previously served in IT leadership positions at UMB Financial Corporation and CoBiz Financial. Rick Sems Equity Bank CEO Years in Banking: 25 Announced as Equity Bank CEO in May 2024. Joined Equity Bank as President in May 2023. Prior to joining, Rick served as Chief Banking Officer of First Bank in St. Louis and President & CEO of Reliance Bank Julie Huber Chief Operating Officer Years in Banking: 35 Announced as Chief Operating Officer in May 2024. Served in variety of leadership roles in her time at Equity Bank including overseeing our operations, HR, compliance functions and sales and training, and as managed the integration process for each acquisition. Kryzsztof Slupkowski Chief Credit Officer Years in Banking: 12 Promoted to Chief Credit Officer in September 2023. Served as Metro Market CCO since 2018, previously served in various credit function at Commerce Bancshares. Ann Knutson Chief Human Resources Officer Years in Banking: 17 Previously served in human resource leadership positions at Bank Five Nine and Summit Credit Union
Organic Growth Strategic Mergers & Acquisitions Disciplined Credit Standards Effective Balance Sheet & Capital Management EPS & Tangible Book Value Growth Our guiding principles and commitment to entrepreneurial spirit are part of our longstanding framework for delivering shareholder value Our Value Proposition
Tangible Book Value per common share. Non-GAAP Measure. For a reconciliation of Non-GAAP measures, please see appendix. AOCI Impact TBVPS TBVPS Ex. AOCI Tangible Book Value | IPO Walk Tangible Book Value | Quarter over Quarter Walk 8.27% CAGR Ex. AOCI During the quarter, Tangible Book Value increased $2.68 in Q4 2024 to $28.38 Since IPO, Tangible Book Value increased has increased $14.10 to $30.07 Tangible Book Value Per Share1 Q3 Q4 Q4
4th Quarter 2024 | Financial Highlights Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Earnings & Profitability2 FY 24 Q4 24 Q3 24 Q4 23 Core Earnings Per Share1 $4.43 $1.10 $1.32 $0.81 Tangible Book Value Per Share1 $30.07 $30.07 $28.38 $25.37 Core Net Income1 $69.5M $17.8M $20.4M $12.5M Net Interest Margin 3.98% 4.17% 3.87% 3.49% Efficiency Ratio1 62.75% 63.02% 52.59% 72.69% Core ROAA 1 1.37% 1.37% 1.56% 1.01% Core ROATCE 1 16.62% 15.29% 19.58% 13.02% Balance Sheet & Capital Total Loans $3.5B $3.5B $3.6B $3.3B Total Deposits $4.4B $4.4B $4.4B $4.1B Tangible Common Equity / Tangible Assets1 9.95% 9.95% 8.21% 7.87% CET 1 Capital Ratio 14.51% 14.51% 11.37% 11.74% Total Risk-based Capital Ratio 18.07% 18.07% 14.78% 15.48% Asset Quality Provision for Credit Losses $2.5 $0.0 $1.2 $0.7 NCOs / Avg. Loans 0.11% 0.04% 0.18% 0.17% NPAs / Total Assets 0.65% 0.65% 0.60% 0.53% Classified Assets / Regulatory Capital 12.10% 12.10% 8.32% 7.09% Highlights $17.8M Core Net Income1 $1.10 Core Earnings Per Share1 $4.4B Total Deposits $3.5B Gross Loans
Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Return On Average Tangible Common Equity - Core1 Return on Average Assets - Core1 Efficiency Ratio1 TCE / TA Excluding AOCI1 Performance Metrics
Primary Drivers Net Interest Income Noninterest Income Rate Protection Noninterest Expense Net interest income totaled $49.5 million in the fourth quarter, up $3.4 million from the third quarter, driven by an increase in 30bp increase in net interest margin. Noninterest income totaled $8.8 million in the fourth quarter, down $500 thousand from the third quarter. Proactive effort to book variable rate assets subject to floor levels. Noninterest expense totaled $37.8 million in the third quarter, up $7.5 million from the third quarterly, mainly attributable to third quarter benefitting from the recognition of an $8.5 million recovery on a former problem asset. Quarter over Quarter Walk Q2 Q3 Net Income Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Q2 1 Q3
Profitability Noninterest income is adjusted to exclude and gain/(loss) on securities transactions Revenue Composition1 Profitability Ratios1
Primary Drivers Deposits Cost of Deposits Loan Yield Investment Yield Borrowings Noninterest-bearing deposits constitute 21.8% of total deposits. Cost of total deposits decreased 21bps and cost of interest-bearing deposits decreased 28bps in the quarter. Loan yield increased 4bps quarter-over-quarter, driven by purchase accounting and non-accrual impacts, offsetting 17bp lower coupon yield quarter-over-quarter Loan yield increased 4bps quarter-over-quarter, driven by purchase accounting and non-accrual impacts, offsetting 17bp lower coupon yield quarter-over-quarter Borrowing balances were down during the quarter, resulting in less expense and a lower overall cost as hedged positions made up a larger percentage of the whole. Quarter over Quarter Walk Net Interest Margin Quarter over Quarter +30bps Net Interest Income 3.87% Q3 4.17% Q4 Q2 Q3
Current Deposit Composition Core Deposits excludes brokered & listing service deposits Trending Deposit Composition & Loan To Deposit Ratio Core Deposits1 / Total Deposits Strong Core Deposit Franchise
Yield Analysis1 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Fed Rate Change Since Beginning of Rate Cycle – Q4 2021 5.25% 5.25% 5.25% 5.18% 4.57% Loans 50% 53% 58% 59% 67% Deposits 34% 38% 37% 39% 40% Yield / Cost Components Loan Coupon exclusive of the impact of derivatives, purchase accounting, non accrual, mortgage premium amort, and loan fees Cost Analysis Cumulative Betas
Total Classified Assets $73.5M Total Classified Assets / Total Bank Regulatory Capital 12.10% Net Charge-offs YTD Annualized / Average Loans 0.11% Total Loans & Yield on Loans Diversified Loan Portfolio Current Loan Composition
Nonperforming Assets1,2 Total Reserve Ratio OREO & Other Rep. Assets excludes Bank owned branch assets, totaling $1.1M, classified as Other Real Estate Owned within the Statements of Condition. NPAs / Assets Includes loans 90+ days past due which are not highlighted in the table. Net Charge-offs / Average Loans Classified Assets Asset Quality Trends | Quarterly
OREO & Other Rep. Assets excludes Bank owned branch assets, totaling $1.1M, classified as Other Real Estate Owned within the Statements of Condition. NPAs / Assets Includes loans 90+ days past due which are not highlighted in the table. Net Charge-offs / Average Loans Classified Assets Nonperforming Assets1,2 Total Reserve Ratio Asset Quality Trends | Annual
Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 12/31/2024 EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels Capacity for organic growth Merger & acquisitions Dividend payout ratio targeted at 10-20% Common stock repurchases Dividends Declared Per Share & Dividend Payout Ratio Shares Repurchased & Weighted Avg. Price Per Share 1 Thousands Capital Management
NOTE: Figures presented in this outlook represent forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Please see Special Note Concerning Forward-Looking Statements and Focus Variables for Outlook and Forecast Core Non-interest Expense. Excludes merger expenses 4th QUARTER 2024 RESULTS ESTIMATES $4,243M $4,300 – 4,350M Avg. Deposits $3,525M $3,600 - 3,650M Avg. Loans $4,716M $4,775 - 4,850M Avg. Earning Assets 4.17% 3.85 - 3.95% Net Interest Margin $0.0M $0.5 – 1.5M Provision For Credit Losses $8.8M $8 – 9M Non-interest Income $37.8M $34 - 37M Non-interest Expense1 16.7% 20 - 22% Effective Tax Rate2 FORWARD LOOKING 1st QUARTER 2025 FY 2025E $4,300 – 4,350M $4,400 - 4,500M $3,525 - 3,600M $3,575 - 3,675M $4,750 - 4,850M $4,850 – 5,050M 3.95 – 4.05% 3.95 - 4.05% $0.5 – 1.5M $2 – 6M $8 – 9M $32 - 36M $36 - 39M $147 - 153M 20 - 22% 20 - 22% Outlook on Key Business Drivers
Focus Variables for Outlook & Forecast OUR OUTLOOK REQUIRES CLARITY AROUND CERTAIN VARIABLES, INCLUDING: ECONOMIC ENVIRONMENT CUSTOMER NEEDS COST OF FUNDING COMPETITIVE MARKET INVESTMENT OPPORTUNITIES POLITICAL ENVIRONMENT Business activity creates opportunity for lending and deposit growth. Current macro-environment response and resolution will be a significant driver. Directly related to credit quality as well as trust in our business. Impacts rates on our product offerings and applies pressure to earnings. Must be able to manage cost and profit yields effectively. Providing customers with rates and services that are competitive with our peers. Irrational operators may have short term impact on opportunities. Growth strategy must be flexible to the other variables that affect our investment options. U.S. politics affect banking regulations, international relationships, tax policies and more.
Our Markets Source: S&P Capital IQ, Deposit Market data as of 6/30/24. Market rank is based on counties with a EQBK physical presence. Kansas Market Rank #8 Deposits $2.5B Deposit Market Share 4.10% Missouri Market Rank #7 Deposits $1.1B Deposit Market Share 1.91% Oklahoma Market Rank #15 Deposits $536M Deposit Market Share 1.63% Arkansas Market Rank #9 Deposits $317M Deposit Market Share 2.72%
Non-GAAP Reconciliations
CALCULATIONS OF TANGIBLE COMMON EQUITY AND RELATED MEASURES ($ in thousands, except per share data) Quarter Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Total stockholder's equity $592,918 $504,038 $461,435 $456,776 $452,860 Less: goodwill 53,101 53,101 53,101 53,101 53,101 Less: core deposit intangibles, net 14,969 16,029 16,636 17,854 7,222 Less: mortgage servicing rights, net 0 0 25 50 75 Less: naming rights, net 957 968 979 989 1,000 Tangible Common Equity $523,891 $433,940 $390,694 $384,782 $391,462 Common shares outstanding at period end 17,419,858 15,288,309 15,200,194 15,327,799 15,428,251 Diluted common shares outstanding at period end 17,636,843 15,497,446 15,358,396 15,469,531 15,629,185 Book value per common share $34.04 $32.97 $30.36 $29.80 $29.35 Tangible book value per common share $30.07 $28.38 $25.70 $25.10 $25.37 Tangible book value per diluted common share $29.70 $28.00 $25.44 $24.87 $25.05 Total assets $5,332,047 $5,355,233 $5,245,517 $5,239,036 $5,034,592 Less: goodwill 53,101 53,101 53,101 53,101 53,101 Less: core deposit intangibles, net 14,969 16,029 16,636 17,854 7,222 Less: mortgage servicing rights, net 0 0 25 50 75 Less: naming rights, net 957 968 979 989 1,000 Tangible assets $5,263,020 $5,285,135 $5,174,776 $5,167,042 $4,973,194 Total stockholders' equity to total assets 11.12% 9.41% 8.80% 8.72% 8.99% Tangible common equity to tangible assets 9.95% 8.21% 7.55% 7.45% 7.87% Non-GAAP reconciliations
CALCULATIONS OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY AND EFFICIENCY RATIO ($ in thousands, except per share data) Quarter Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Total average stockholders' equity $533,227 $485,468 $455,322 $460,244 $423,207 Less: average intangible assets 69,570 70,824 71,423 62,203 61,756 Average tangible common equity $463,657 $414,644 $383,899 $398,041 $361,451 Average impact from core earnings adjustments 424 288 2,251 477 20,418 Core average tangible common equity $464,081 $414,932 $386,150 $398,518 $381,869 Net income (loss) allocable to common stockholders 16,986 19,851 11,716 14,068 (28,299) Less: net gain on acquisition 0 831 60 1,240 0 Less: net gain (loss) on securities transactions (2) 206 (27) 43 (50,618) Add: merger expenses 0 618 2,287 1,556 297 Add: BOLI tax expense 0 0 1,730 0 0 Add: amortization of intangible assets 1,071 1,148 1,254 935 775 Less: tax effect of intangible assets amortization 225 153 737 254 10,855 Adjusted net income (loss) allocable to common stockholders $17,834 $20,427 $16,217 $15,022 $12,536 Return on total average stockholders' equity (ROAE) annualized 12.67% 16.27% 10.35% 12.29% -26.53% Return on total average tangible common equity (ROATCE) annualized 15.30% 19.92% 13.31% 14.96% -30.39% Core return on total average tangible common equity (CROATCE) annualized 15.29% 19.58% 16.89% 15.16% 13.02% Non-interest expense $37,806 $30,328 $38,871 $37,152 $34,998 Less: merger expense 0 618 2,287 1,556 297 Less: amortization of intangible assets 1,071 1,148 1,254 935 775 Adjusted non-interest expense $36,735 $28,562 $35,330 $34,661 $33,926 Net interest income $49,473 $46,031 $46,476 $44,182 $39,467 Non-interest income 8,816 9,317 8,958 11,731 (43,414) Less: net gain on acquisition and branch sales 0 831 60 1,240 0 Less: net gains (losses) from securities transactions (2) 206 (27) 43 (50,618) Adjusted non-interest income $8,818 $8,280 $8,925 $10,448 $7,204 Net interest income plus adjusted non-interest income $58,291 $54,311 $55,401 $54,630 $46,671 Non-interest expense to net interest income plus non-interest income 64.86% 54.80% 70.12% 66.45% -886.70% Efficiency ratio 63.02% 54.59% 63.77% 63.45% 72.69% Average Assets $5,163,166 $5,205,017 $5,196,258 $5,152,915 $4,892,712 Core non-interest expense to average assets 2.83% 2.18% 2.73% 2.71% 2.75% Non-GAAP reconciliations
CALCULATIONS OF RETURN ON AVERAGE ASSETS, AVERAGE EQUITY AND OPERATING NET INCOME ($ in thousands, except per share data) Quarter Ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Net income (loss) allocable to common stockholders 16,986 19,851 11,716 14,068 (28,299) Less: net gain on acquisition 0 831 60 1,240 0 Less: net gain (loss) on securities transactions (2) 206 (27) 43 (50,618) Add: merger expenses 0 618 2,287 1,556 297 Add: BOLI tax expense 0 0 1,730 0 0 Add: amortization of intangible assets 1,071 1,148 1,254 935 775 Less: tax effect of intangible assets amortization 225 153 737 254 10,855 Core net income (loss) allocable to common stockholders $17,834 $20,427 $16,217 $15,022 $12,536 Add: income tax provision 3,399 3,986 4,582 3,693 (11,357) Add: provision (reversal) of credit losses 98 1,183 265 1,000 711 Add: tax effect of intangible assets amortization 225 153 737 254 10,885 Core pre-tax, pre-provision income $21,556 $25,749 $21,801 $19,969 $12,745 Total average assets $5,163,166 $5,205,017 $5,196,258 $5,152,915 $4,892,712 Total average stockholders' equity $533,227 $485,468 $455,322 $460,244 $423,207 Weighted Average Diluted Shares 16,262,965 15,451,545 15,377,980 15,569,225 15,417,200 Diluted earnings (loss) per share $1.04 $1.28 $0.76 $0.90 -$1.84 Core earnings (loss) per diluted share $1.10 $1.32 $1.05 $0.96 $0.81 Core pre-tax pre-provision earnings (loss) per diluted share $1.33 $1.67 $1.42 $1.28 $0.83 Return on average assets (ROAA) annualized 1.31% 1.52% 0.91% 1.10% -2.29% Core return on average assets annualized 1.37% 1.56% 1.25% 1.17% 1.01% Return on average equity (ROAE) 12.67% 16.27% 10.35% 12.29% -26.53% Core return on average equity 13.29% 16.73% 14.25% 13.11% 11.21% Non-GAAP reconciliations
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